Well this is a catch 22 - many countries want to see a hotel or plane booking for the visa application itself. India requires a return ticket for the visa application, for example - so what can you do?

Buy a refundable one

Of course I see your point, I didn't consider that you may need confirmed travel plans and flight tickets.

Regardless, the point still stands - an application is just that, it is not a guarantee. Given the previous visa refusals in comparable countries, a different approach would have made a lot more sense.

I'd still be interested why the two UK visa were denied, though. OP, can you shed light on this?

I have spent Money. We can travel where ever we want to. I am saying their decision is unfair I have enough proofs. Anyway I am living in England which is far more stronger than Swiss. I was going to spend Money there.

I'm a bit puzzled here: How is England far more stronger than Swiss?

This said, life is unfair (especially for the one who expected something else than the actual outcome based on ones own assumptions)...

I am living in London holding Indian passport and Indefinite Leave to Remain permit in UK.

I have one fll time job and a part time as well with 40 hrs and 20 hrs contract. I had 2 weeks holiday booked so I planned a short trip to Swiss and Paris. I received a Schengen multi entry visa from Swiss embassy London. However when I applied for my wife and daughters tourist visa from Mumbai embassy their refused them twice. I provided all the necessary paper work as per their guidelines including all my documents from London. I have enough funds also currently employed in two separate jobs.
My wife had UK visitors visa refusal twice in 2013. At that time I was on Tier 1 visa and my visa was expiring in two months at the time of her application.

I received my ILR after two months and I went to India to see her. She delivered our baby last year. Since then I didn't apply because she was pregnant and I didn't wanted to bring her on tourist visa. We are planning to apply for dependent visa for UK later this year.

Since I had this holiday I planned this trip to Europe. To my horror their visa is refused. First time reason was I have not given enough justification for the purposes of trip and they won't return back after visa expiry. Second time they removed the first point and kept the second point on the refusal letter.
I am really confused why they are doing this. I am a UK resident and a genuine person why would thy won't return to India from Europe if I am returning back k to London.

I am now planning to appeal. Can someone kindly please suggest me on this?

Thank you.

From the swiss consulate point of view, They are right to suspect the intention. Lot of people do that which is generalised.